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Cash limit

Rudrayani Shedjale (Assistant Accountant) (751 Points)

12 March 2018

Hello

I want to know what is the limit for cash transaction per day? Rs.10,000/- or Rs.20,000/-??

is it different from 2lac cash limit per day/per transaction ?

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25 Replies

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

10000/ per day and 2 lacs/annum

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Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 12 March 2018

is it under same section 269ST?

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

No, under section 40(3) , the cash limit of 10000/ day came in to existence.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 12 March 2018

thanks for the information.this means we have to take care that yealy limit of 2lac should not be crossed as well 10000/-per day should not exceed. But what is we have given cash for petty cash use which exceeds Rs.10,000/-?

Nithin Joseph (CA in Practice) (114 Points)
Replied 12 March 2018

Limit of 10000 is mentioned under 40a(3)

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VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

Originally posted by : Rudrayani Shedjale
	thanks for the information.this means we have to take care that yealy limit of 2lac should not be crossed as well 10000/-per day should not exceed. But what is we have given cash for petty cash use which exceeds Rs.10,000/-?

yes that's it. In the case of petty cash , you can transfer the amount but make sure that it doesn't crossing the limit. Means, for a single transaction done with petty cash shuldn't cross 10000/ day. And there is an exception in this section... That is the payment to transport operator is allowed up to Rs. 35,000.

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

Originally posted by : Nithin Joseph
	Limit of 10000 is mentioned under 40a(3)

Yes ...

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 12 March 2018

ok. but Rs.10,000/-per day limit will be applicable from 1.4.18?

Nithin Joseph (CA in Practice) (114 Points)
Replied 12 March 2018

Yes..with effect from 01.04.2018

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

Originally posted by : Rudrayani Shedjale
	ok. but Rs.10,000/-per day limit will be applicable from 1.4.18?

Yes...

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Aashish Sachdeva (839 Points)
Replied 12 March 2018

As per my personal opinion, at the time of payment 10000 u/s 40A(3) FROM 01/04/2017 and at the time of receipt 200000.....

ITS MY PERSONAL OPINION, IF ANYBODY HAVE DIFFERENT VIEW THEN VIEWS ARE WELCOME.. THANKS. DISCLAIMER: ITS NOT PROFESSIONAL ADVICE.

Rudrayani Shedjale (Assistant Accountant) (751 Points)
Replied 12 March 2018

Details of petty cash expenses on different dates Rs.15000/-

that is paid through cash on a single day-means cash given for site petty cash Rs.15000/-

is is breaking of 10000/-cash limit?

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

Originally posted by : Rudrayani Shedjale
	Details of petty cash expenses on different dates Rs.15000/- that is paid through cash on a single day-means cash given for site petty cash Rs.15000/- is is breaking of 10000/-cash limit?

Don't book expenses which is crossing the limit. if you give that amount to petty cash , it is ok. If you utilise that petty cash amount in a single transaction for booking some expenses, you would attract the penalty or disallowance...

VINEETH.R (FINANCIAL ACCOUNTANT) (458 Points)
Replied 12 March 2018

Originally posted by : Aashish Sachdeva
	As per my personal opinion, at the time of payment 10000 u/s 40A(3) FROM 01/04/2017 and at the time of receipt 200000.....ITS MY PERSONAL OPINION, IF ANYBODY HAVE DIFFERENT VIEW THEN VIEWS ARE WELCOME.. THANKS. DISCLAIMER: ITS NOT PROFESSIONAL ADVICE.

From 1/4/2018 onwards...